New World Development Co. Ltd. · HKEX:17
New World Development — H1 2020 Earnings Presentation
24 slides from New World Development's earnings presentation, Feb 28, 2020
Slide 1: 1HFY2020 Interim results
WE CREATE WE ARE ARTISANS WE ARE CSV. 1HFY2020 Interim results 2020.02.28
Slide 2: Disclaimer - Important Notice
DISCLAIMER - IMPORTANT NOTICE The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, inducement, invitation, recommendation o
Slide 3: Our investment themes
Our investment themes DP+IP dual engine Synegies with NWS VALUE CREATION GBA initiatives CYCLE Old city redevelopment Sustainable & progressive dividend policy Non-core asset disposal WE CREATE, WE ARE ARTISANS, WE ARE CSV. 3
Slide 4: 1HFY2020 financial highlights
1HFY2020 financial highlights 1HFY2020 1HFY2019 HK$ m HK$ m - Different booking mix in HK: no new project completion - HK DP revenues dropped from HK$21bn to HK$3.7bn Revenues 32,464.4 49,267.1 - Impacts from macro and social event on individual segment Segment results 9,489.5 12,338.6 - Significant
Slide 5: Property sales – GBA growth + margin expansion
Property sales – GBA growth + margin expansion Segment results 1HFY2020 1HYF2019 Change HK$ m Property development 6,800.9 8,885.1 (23%) Different booking mix 1HFY2020: No new project completion; mainly from the inventory sales - Hong Kong & Singapore 1,777.0 5,734.6 (69%) - Mainland China 5,023.9 3
Slide 6: Growth in recurrent rental income from investment properties
Growth in recurrent rental income from investment properties Segment results 1HFY2020 1HFY2019 Change HK$ m Property investment 1,310.3 1,157.3 + 13% K11 MUSEA commenced operations in August 2019 Major investment properties recorded satisfactory occupancy - Hong Kong 848.0 705.4 + 20% - Mainland Chi
Slide 7: NWS, hotel and others – negatively affected
NWS, hotel and others – negatively affected HK$ m 1HFY2020 1HFY2019 Change Various investments such as facilities management and transport NWS core businesses 1 2,163.3 1,918.1 + 13% were affected by the social event and macro trends SUEZ NWS contribution dropped mainly due to one-off fair value gai
Slide 8: Our deliverables to create growth momentum
Our deliverables to create growth momentum 1. Sustainable & progressive dividend policy 2. Stable contracted sales 3. Recurrent rental income in acceleration mode 4. Well-positioned in the GBA with old city redevelopment to sustain growth 5. Work ahead of refinancing schedule 6. Non-core assets disp
Slide 9: 1. Sustainable & progressive dividend policy
1. Sustainable & progressive dividend policy Dividend per share (HK$) 0.55 0.50 0.45 0.40 0.35 0.30 FY2020 Interim DPS 0.25 maintained 0.20 @ HK$0.14 0.15 0.10 0.05 0.00 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Dividend Full year dividend Interim dividend - Our board shares glory with
Slide 10: 2. Stable contracted sales
2. Stable contracted sales DP + IP dual engine in delivery Property development - Attributable income to be recognized in 2HFY2020, FY2021 and FY2022: Over HK$13bn - Contracted sales in 1HFY2020: - HK: HK$3 bn, impressive ASP was achieved - Mainland China: RMB11.6 bn, residential ASP RMB33,000 per s
Slide 11: 2. Stable contracted sales – Hong Kong
2. Stable contracted sales Hong Kong contracted sales FY2020 FY2021 FY2022 FY2023 FY2024 key contributors ATRIUM HOUSE EIGHT KWAI FONG FLEUR PAVILIA MOUNT PAVILIA Tai Wai Station project Cheung Shun Street office King Lam Street office Wing Hong Street office Kai Tak projects - HK: attributable cont
Slide 12: 2. Stable contracted sales – Mainland China
2. Stable contracted sales Mainland China contracted sales FY2020 FY2021 FY2022 FY2023 FY2024 key contributors in the GBA Shenzhen Prince Bay Project Foshan Canton First Estate Guangzhou Central Park-view Guangzhou Covent Garden Guangzhou Park Paradise Guangzhou Zengcheng Projects Guangzhou Panyu Pr
Slide 13: 3. Recurrent rental income in acceleration mode
3. Recurrent rental income in acceleration mode DP + IP dual engine in delivery Property investment - HK gross rental income recorded HK$1,344.4 m, up 36% - Mainland China gross rental income recorded HK$844.1 m, up 6% - K11 MUSEA and K11 ATELIER King’s Road added over 1.5 m sq ft to our IP portfoli
Slide 14: Hong Kong and Mainland China key investment properties
3. Recurrent rental income in acceleration mode Hong Kong key investment properties FY2020 FY2021 FY2022 FY2023 FY2024 K11 MUSEA Retail K11 ATELIER King’s Road Office HK SKYCITY Office Retail Kai Tak Sports Park Retail King Lam Street project Office Additional area Over 1.5 m sq ft 0.6 m sq ft Over
Slide 15: 4. Well-positioned in the GBA
4. Well-positioned in the GBA 50% of core landbank in GBA Period Project acquired in GBA since 2016 Initial completion Property development 08.2016 Shenzhen Qianhai project FY2021 12.2016 Shenzhen Prince Bay project – A FY2022 - Actively reposition our operation with a GBA-centric strategy since 201
Slide 16: 4. Old city redevelopment in good progress
4. Well-positioned in the GBA Old city redevelopment in good progress Already obtained villagers approval Target Period Project inclusion Old city redevelopment 2017Q2 Shenzhen Nanshan Xili project FY2023 - We are the only HK developer engaged with proven track record 2018Q3 Guangzhou Liwan Shancun
Slide 17: 5. Work ahead of refinancing schedule
5. Work ahead of refinancing schedule Maturity profile of borrowings FY2020 maturity 14% All refinancing 24% completed Within 1 yr in 2nd yr in 3rd-5th yr after 5 yrs 33% fixed rate vs 67% floating rate FY2021 maturity 39% 23% Target all done by June 2020 Working ahead of schedule - Cash and bank ba
Slide 18: 6. Non-core assets disposal in good progress & more to come
6. Non-core assets disposal in good progress & more to come Disposal in 1HFY2020 Total consideration Changsha La Ville New World NWCL RMB2.2 bn Shares of Beijing Capital Int’l Airport NWS HK$0.8 bn Disposal of various projects NWS HK$0.1 bn Disposal in 2HFY2020 as at Feb 2020 Total consideration 50%
Slide 19: Create shared value
Create shared value Corporations and society thrive together “今次捐助希望可以為社會出一分力，並鼓勵商界及各界 人士攜手協助香港打贏這場沒有硝煙的硬仗!” We are CSV To bring actionable solutions to environmental and societal challenges - We are the 1st Hong Kong developer to… - Engage in reimaging social housing through farmland contributions
Slide 20: We are well prepared & capturing growth ahead
We are well prepared & capturing growth ahead 01 Actively review cost 03 Abundant saleable resources and business structure with well-positioned IP portfolio for efficiency enhancement to create growth momentum Our approach 02 Work ahead of our 04 Core business direction refinancing schedule to main
Slide 21: Appendix: New World Sustainability
WE CREATE WE ARE ARTISANS WE ARE CSV. Appendix New World Sustainability
Slide 22: Significant Results Achieved in FY 2019
Significant Results Achieved in FY 2019 Board Oversight on ESG Mr. Adrian CHENG Chi-Kong, Executive Vice-Chairman & General Manager, NWD Chairperson, Board Sustainability Committee and Group Sustainability Steering Committee New World Sustainability Vision 2030 Targets Sustainable Property Developme
Slide 23: An Emerging Global Leader on ESG
An Emerging Global Leader on ESG Creating Shared Value to People Around Us ESG Ratings Performance (1) Awards and Achievement (1) First listed on DJSI Asia Pacific in 2019 20 awards in 2019 incl.: • The Asset ESG Corporate Awards 2019 Environmental, Social and Governance – Ranked 1st Gold Award Amon
Slide 24: Alignment with Global Agenda and Roadmaps
Alignment with Global Agenda and Roadmaps Aligning with global concerns Actively transit to low-carbon economy Disclosed climate change actions referring TCFD and Align our SV 2030 with SDGs with technology and innovation continue to conducted climate resilience assessment Partnerships to accelerate
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